Chairperson, hon Minister, Deputy Minister, Mr Geyer from the Western Cape, the SA Local Government Association, Salga, hon members, firstly, I would like to thank the new Minister of Water and Environmental Affairs and the Department of Environmental Affairs for their presentations to our committee.
With regard to Water Affairs - this is one and the same Minister - the Minister inherited a department with a leadership crisis and many challenges. The Auditor-General's report revealed R1 billion of irregular expenditure on the extension of contracts and deviation from procurement policies. However, thanks go to the Minister for turning the Department of Water Affairs around.
Most of the existing directors-general and deputy directors-general and the chief financial officer of Water Affairs are all in an acting capacity at present, and we trust that they will be appointed in a permanent capacity as soon as possible.
The budget allocation for the Department of Water Affairs for the 2011-12 financial year amounts to R9,9 billion. The proposed budget increases over the three-year Medium-Term Expenditure Framework, MTEF, period are R9,9 billion, R10,2 billion and R10,9 billion respectively, which represents a 15,6% increase in real terms over the three-year period. The budget for the Department of Environmental Affairs increases by 11,4% from R2,4 billion in 2010-11 to R2,8 billion in 2011-12.
The largest expenditure over the medium term has been on the acquisition - as we heard earlier - of the polar research vessel to replace the SA Agulhas. This falls under the Oceans and Coasts programme. The department also received an additional allocation of R279,9 million, which will be shared with the Department of International Relations and Co-operation for, amongst other things, the hosting of the Conference of the Parties, COP 17, Convention on Climate Change that will be held in Durban later this year. I am sure we all wish this department a very successful convention.
Municipalities in seven of the provinces owe the water boards more than R1,04 billion. This figure excludes Rand Water, the biggest water board in South Africa. The Free State municipalities - I am from the Free State - make up a large proportion of this debt. Indeed, some R363 million was owed to two water boards in the province, namely Sedibeng and Bloem Water alone.
According to the department, some 98% of all present water resources have already been allocated and the availability of new water resources may soon become a major restriction on growth in the country. The scarcity of water impacts on social and economic development. Most of the water boards have reported a decline in their raw water quality owing to pollution and contamination of the river systems by industrial, agricultural and human waste entering these river systems. This has resulted, as the report states, in extensive disinfection and purification measures which increase the cost of potable water to the municipalities.
Acid mine drainage remains a worrying factor. There are many mines in the Welkom area, for example - and I know Gauteng is a big problem - which have ceased production and have still not been rehabilitated. It is time that the mines be held responsible for the pollution and contribute to the costs of acid mine drainage. Likewise, it is also important that the department take action against industries, farmers and users that are using water illegally. Some 120 mines were operating without water licences last year.
We all await the publication of the Green Drop report, last published in April 2010, which will now hopefully be released on 26 June at the Municipal Water Quality Conference.
The 2007 State of the Environment report indicates that there are numerous environmental challenges and that the state of our environment has, in fact, deteriorated in every respect. This is according to this report. Mining rights are granted in sensitive ecosystems, in Ramsar sites and in water systems without regard to the long-term environmental effects. The protection of our fragile environment needs the co-operation of all stakeholders, such as the police, justice, health, and local government, to name but a few.
The National Environmental Management Act, Act 107 of 1998, Nema, is supposed to give overarching environmental legislative protection with regard to matters such as the sustainability of ecosystems, co-operative environmental governance, marine living resources, mining, biodiversity, pollution, waste and integrated coastal management.
One of the contentious issues which will have to be decided upon will be the issue of hydraulic fracturing, or "fracking" as it is known, in the search for shale gas in the Karoo and in the Northern Cape. The Minister will then have to take into account any environmental impact assessments and earth tremors, which have been reported in the papers, such as in the United Kingdom where it was proved that earth tremors had been directly caused by hydraulic fracturing. Environmental - together with sustainable - development will have to be given much thought and attention.
By 2025, some 23% of the world's younger population will be living in sub- Saharan Africa. Owing to global climate change and the ever-increasing world population, great stress will be placed on the world's environment. Hotels - and who knows what's next - are being planned, for example, in our national game parks. The department has the difficult task of simultaneously enforcing our good legislation while growing our economy. We must all use our existing resources more efficiently, thereby protecting our fragile environment. I thank you. [Applause.]